What reveals trend in quality cost s a percentage of sales

Assignment Help Financial Accounting
Reference no: EM13216058

Ross Company implemented a quality improvement program and tracked the following for the five years:

Quality costs Actual sales costs as a percentage of sales
2009 500,000 2,000,000 25.00%
2010 495,000 2,200,000 22.50%
2011 450,000 2,400,000 18.75%
2012 434,000 2,480,000 17.50%
2013 400,000 3,200,000 12.50%

1.Prepare a bar graph that reveals the trend in quality cost s a percentage of sales(time on the horizontial axis and percentages on the vertical).Comment on the message of the graph.

By cost category as a percentage of sales for the same period of time:

Prevention Appraisal internal fail external failure
2009 2.50% 2.50% 7.50% 12.50%
2010 3.75% 3.00% 5.00% 10.75%
2011 3.75% 3.75% 3.75% 7.50%
2012 5.00% 3.75% 3.13% 5.63%
2013 6.38% 3.00% 2.50% 1.90%

2.Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?

Reference no: EM13216058

Questions Cloud

Interpret confidence interval : Compute the 99% confidence interval for the proportion of clocks with errors in assembly and interpret this confidence interval.
Does the bowman-to-downtown route meet the sta : A standard deviation of 4.0 days; and 12 employees were absent more than 10 days. Set up a 95% confidence interval estimate of the average number of days absent for the company's workers last year.
Determine how much is reported for goodwill : On June 1, 200X, Ben's accounts receivable had a fair value of $ 140,000. Additionally, Ben's capitalized software costs were estimated to have a fair value of $ 200,000 and liabilities were valued at $30,000. All other items were stated at their ..
Calculate the percentage of families : The data show that acreage owned per family is normally distributed with a mean of 10.0 acres and a standard deviation of 1.5 acres. Calculate the percentage of families that own at least 8.1 acres
What reveals trend in quality cost s a percentage of sales : Ross Company implemented a quality improvement program and tracked the following for the five years: Quality costs Actual sales costs as a percentage of sales 2009 500,000 2,000,000 25.00% 2010 495,000 2,200,000 22.50% 2011 450,000 2,400,000 18.75%
Explain a bad reputation among the stakeholders : This can result in the contractor getting a bad reputation among the stakeholders and can result in a non-renewal of the contract and a poor past performance report for the contractor. How can a contractor prevent this problem and protect itself f..
Ethical issues in business statistics : How can the ethical issues raised, be addressed from a Christian worldview? In other words, what guidance, using principles from a Christian worldview perspective, could be applied to understand and address these ethical issues?
What is the probability that ed finishes last : What is the probability that Dave wins the sprint and what is the probability that Dave wins and John places second, what is the probability that Ed finishes last
Examine the relative importance of the returns : Define the four categories of returns described in your text and be sure to cite the source for this information.Now, imagine you have been asked to help rethink the compensation policy at your previous, current, or future place of work. The HR man..

Reviews

Write a Review

Financial Accounting Questions & Answers

  It will not be subject to the fica tax

One way to avoid part of this: Use an S corporation, and don't pay yourself too much. Maybe pay yourself $50,000, and take the other $40,000 as a pass-through profit from your S corp. It will not be subject to the FICA tax, saving 15.3% of the tax..

  Determine the alpha store as an investment of the company

What income amount should be used to evaluate the Alpha Store as an investment of the company?

  What assets would we require and might we finance them

Even small businesses require plant, property and equipment to compete and normally rely on some form of debt to finance itself. Let's start up a company that sells auto parts like Napa or Auto Zone. What assets would we require? How might we fin..

  Calculate the penalty that the irs agent can impose

Calculate the penalty that the IRS agent can impose if he concludes that the improper deduction was attributable to the Luces' negligence.

  Prepare an income statement for the year ended

Prepare an income statement for the year ended December 31, 2011, and a balance sheet as of December 31, 2011 and prepare all journal entries to record the information for 2012. Also prepare any necessary adjusting entries.

  Example of investing and financing activities

Explain what non-cash transactions does the company have on its cash flow statement? Explain what are some other examples of non-cash transactions?

  What is chipper maximum cost recovery deduction

Chipper, a calendar-year corporation, purchased new machinery for $475,000 in February, 2010. In October, it purchased $725,000 of used machinery. What is Chipper™s maximum cost recovery deduction for 2010?

  Does she save/borrow more or less

Suppose the interest rate increases. What happens to her period 1 consumption? Her period 2 consumption? Does she save/borrow more or less?

  Describe the changing role of management accountants

Describe the changing role of management accountants with reference to how it impacts on the current business environment.

  Prepare income statements for both years

Required: Prepare income statements for both years using both absorption and variable costing methods.

  Create two additional techniques that these organizations

Create two additional techniques that these organizations can use to encourage contributions from consumers. Provide support for your response.

  Prepare the september 9 entry to establish the fund

Prepare the September 9 entry to establish the fund and (2) the September30 entry to both reimburse the fund and reduce it to $300.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd